1、1 Addressing Informality:Transitioning to the Formal Economy KEY MESSAGES Driven by technological breakthroughs in Generative AI(GenAI),the development and adoption of AI have surged both globally and within the APEC region.AI is increasingly utilised across various sectors as its capabilities evolv

2、e into more general-purpose applications.This transformation is also reshaping the trade landscape,influencing global value chains,generating new demands for AI products,supporting goods and services,and attracting skilled talent.At the same time,AI is introducing several challenges,including the op

3、acity of its decision-making processes,potential intellectual property(IP)infringements,and the risk of widening the digital divide.Effective policies are essential to harness the benefits of AI while mitigating associated risks and limitations.There is a growing trend of global and regional initiat

4、ives aimed at regulating AI,with several key efforts involving APEC economies.AI has become a recurring topic in trade agreements,appearing in at least nine Free Trade Agreements(FTAs)and Digital Economy Agreements(DEAs),six of which include at least one APEC economy.At the domestic level,several AP

5、EC economies have established AI-specific laws,regulations,or guidelines to foster AI development and use.There is also an increasing interest in advancing dedicated AI legislation among economies who have not done so.However,despite a general approach towards a risk-based regulation,notable differe

6、nces remain in the scope and implementation of AI regulations among economies.Some economies are also relying on existing regulatory frameworks to govern AI(even if it is non-AI specific)while acknowledging the need for updates and enhancements.Others prioritise risk management guidelines and standa